First Responder Funding Modernization Act of 2006 - Prohibits the Department of Homeland Security (DHS) from limiting the amount of grant funds provided under the Urban Area Security Initiative or the State Homeland Security Grant Program that may be used to pay salaries or overtime pay of law enforcement officials engaged in antiterrorism activities. Requires DHS to treat such a proposed use of grant funds as at least as effective as all other proposed uses.
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